Automobile sales declined again in November after a month of positive numbers and the poor market sentiment forced companies to reduce their dispatches to dealers. The trend, the Society of Indian Automobile Manufacturers (SIAM) said, was ‘worrisome’.
According to the monthly data released by SIAM, barring utility vehicles and three-wheelers, sales in all other segments — passenger and commercial vehicles, scooters and motorcycles — fell on a year-on-year (YoY) basis last month.
“Challenges continue in the passenger vehicle segment,” said Rajesh Menon, Director-General, SIAM. “We have to remember that the current numbers are on a comparatively low base of November 2018. It is worrisome that commercial vehicles and two-wheeler sales continue to be in the negative zone.”
Trucks crash
The commercial vehicle segment suffered because of the low demand in the infrastructure sector. Commercial vehicles sales plunged by 15 per cent, to 61,907 units (72,812 units).
Passenger car sales declined around 11 per cent to 1,60,306 units in November, against 1,79,783 units in the same month last year. SIAM blamed this on economic factors such as low GDP growth, which directly impact the auto industry’s performance.
Rural demand down
Two-wheeler sales were hit by low offtake in rural areas, Menon said. Scooter sales dropped 12 per cent to 4,59,851 units last month compared with 5,21,542 units in November 2018. Similarly, motorcycle sales fell 15 per cent to 8,93,538 units (10,49,651 units).
Total passenger vehicles sales declined to 2,63,773 units (2,66,000 units).
Utility vehicles on a high
However, new launches in the utility vehicle segment kept sales ticking smartly in November, too, after October’s festival surge, SIAM said. Domestic sales of utility vehicles grew 33 per cent to 92,739 units in November (69,884 units).
While new launches such as Kia Motor’s Seltos, MG Motor’s Hector and Maruti Suzuki XL6 are drawing customers, older models such as Maruti Suzuki Vitara Brezza and Ertiga; Hyundai Motor's Venue; Tata Nexon; and Mahindra & Mahindra XUV300 also continue to be popular.
But even this could not offset the decline in other segments, and total sales thus dipped 12 per cent YoY to 17,92,415 units in November (20,38,007 units).